I have a degree in Economics from a leading university. Perhaps you could point out a factual error

The Honolulu Advertiser reports there is no shortage of housing on one island. Carmen Leal was so frustrated in her search for a home to rent last summer that she remembers the experience with horror. But as Honolulu s rental market enters a much different summer this year, conditions are so renter friendly that Leal feels she s the one in control as she searches for an apartment.
Leal posted a request on the Internet for a two-bedroom unit at around $1,600 red sox spring training tickets per month and landlords are suddenly coming to her. I m just getting flooded with responses, said Leal, now emboldened to negotiate for a better price.
The Advertiser Sunday classifieds listed 1,074 units for rent on Sunday, May 14, compared with 752 on Sunday, May 15, 2005. All of us are experiencing vacancies unlike a year ago, where that was very limited, said Cathy Matthews, property managers on O ahu.
Landlords and property managers say the increased supply is being fueled, in part, by military families moving back to the Mainland while their military members are deployed; and by real estate investors who can t resell their properties at the prices they want and have to add them to the pool of rental properties already on the market.
The addition red sox spring training tickets of even more rental homes means that some landlords, already facing rising property appraisals and property taxes, have to cut rents just to keep properties occupied and cash flowing through their units.
Inventory is definitely higher than before, said Carl Frazier, owner and property manager. Frazier has been unable to find a tenant for a luxury two-bedroom, two-bath condominium. The condo has sat on the market red sox spring training tickets for more than a month. To try to generate interest, Frazier has dropped the price $100 to $2,800 per month. It would have gone very quickly one year ago. Now lots of inventory is driving prices down, Frazier said.
For investors, Frazier often has to tutor them on the change in Honolulu s rental market. I have owners that want me to raise the rent because their property taxes went up, Frazier said. They don t understand that I can t arbitrarily raise rent under a lease. Their monthly bill has absolutely nothing to do with what we can get for rent. What the market will bear is what the market red sox spring training tickets will bear, even if their monthly negative (cash flow) is too high.
Thanks to the reader who sent this in. What a classic sign of overbuilding. red sox spring training tickets Imagine red sox spring training tickets if you are a multifamily owner getting pulled down by this. It s the same in AZ. Like the people in this article, if you really want to haggle the rents down, it can be done because there are so many flippers that will rent a new house, even if you have a pet.
I have owners that want me to raise the rent because their property taxes went up,’ Frazier said. ‘They don’t understand that I can’t arbitrarily raise rent under a lease. Their monthly bill has absolutely nothing to do with what we can get for rent. What the market will bear is what the market will bear, even if their monthly negative (cash flow) is too high.’”
THis is a nice summary of supply/demand. If a FLOPPER/Owner doesn t get this, they deserve to lose big $$$. Rent rate = demand/supply balance. Taxes = whatever the government decides they want and need. Not necessarily any relation. To the flippers - as Homer would say DDDDUUUUUHHHH!!!!!
One key here is the amount of construction going on. Also, I don t think wages in the area are close to supporting red sox spring training tickets home prices. Throw in foolhardy speculation, and you end up oversupplied. I know it s hard to see in areas where condo conversions are gobbling up apartments. But just like in Florida, eventually the flippers red sox spring training tickets will cave in to try and stop the bleeding. At some point, the negative cash flow will force sales prices down.
sadly for me anyway That s seems to be the deal here (In LA..Beverly grove-ish area) I d like to rent a house, but there s not much available, and asking prices are at least 4-6k for 2/1. And Duplexes are in the 2900-3900 range. Oh well, I ll stay in my place I guess. It s fairly cheap, as I ve been there for a while but I d like more space
I play golf every Thursday night in the summer. I drive past two apartment complexes that I did underwriting surveys on a couple of years ago. They were new and very nice when I did the property surveys. Rents were around 1,000 to 1,200 a month. These apartments are owned by a large national apartment company. I had to laugh the first time I drove by this spring. They are now Condo Conversions. For sale signs every where. red sox spring training tickets You know when a company that is in the business of building and renting red sox spring training tickets apartments, starts sellling them as condo s, something does not add up. Made for a good laugh though.
Scenario doesnt work if there are more houses than people needing them As Ben said above it is a classic example of overbuilding, and once the spec buying ceases the true supply hits the market creating a glut of properties.
Several things are creating confusion on this issue in some markets. As Ben said, where condo conversions are happening there is a temporary shortage of apartments, but that goes away when the condos become rentals. Also, flippers are holding tremendous amounts of vacant inventory in some markets because are trying to sell. Eventually that all works its way back into the rental market. Not to mention the vacancies red sox spring training tickets builders are holding, or soon will be.
I can attest to the shortage of apartments. Here in Palm Beach County they are still converting apartments to condsos and it has affected rents. Rents have gone up quite a bit due to a shortage of supply as well as hurricane damage to complexes.
Ultimately, red sox spring training tickets many of these conversions will be turned back into rentals and/or speculators will be clamoring for tenents. Rents will flatline or even drift lower as more supply hits the rental market.
I have a degree in Economics from a leading university. Perhaps you could point out a factual error in my post, as opposed to telling me to achieve a higher level of education in a subject in which I am already well-versed. Your thoughtful response is eagerly anticipated.
When your post has all this information for a particular area it will have something to dispute. Until then a learned individual such as yourself should understand there is no basis for any opinion whatsoever.
feepness: ceteris paribus, when an individual red sox spring training tickets building is converted from rental to condo, there is almost certainly a decline in rental units as a result. None of the information you requested will change that. There is an infintesimally small chance that in a market as a whole that is undergoing red sox spring training tickets condo conversions, that the number red sox spring training tickets of potential renters declines by the same number of lost rental units. That is, only if all buyers of converted units that live in those units actually were formerly renters in that market would you see a net neutral from the conversion, discounting red sox spring training tickets the net decline during the conversion process itself. And that is a supply/demand net neutral, not a net neutral for the number of rental units (the number of rental units still declines).
I only used 19 words in my first post on the matter, and I said a lot. Why do you think you and other posters responded? I am sorry it took me so many words in subsequent posting red sox spring training tickets to make you understand and admit that I was right. What was I right about, if I had nothing to say?
Your original statement was very simple. Too simple. In both statements, you assume much. Namely, demand always goes up and other market forces are totally irrelevant. Which, as a Bachelor of Science in Economics you should be acutely aware play into the TOTAL housing equation. You know, those pesky Macro Economic things, like population trends (SD had a net loss of 40,000 people according to the US Census.), Employment (SD is already shedding Construction jobs, down 15,000-U/T), inventory of homes/condos at record levels, affordability (laff), over-leveraged market players, interest rates, blah blah blah. These have absolutely no relevance. Zip. Nada. Demand is untouchable. The Market red sox spring training tickets always red sox spring training tickets goes up! Everyone wants to live here!
Excess red sox spring training tickets housing red sox spring training tickets inventory is corrected red sox spring training tickets in two ways. It s either sold or rented. As inventory increases (at record levels mind you and with no end in sight), downward pressures on both prices and rents are the subsequent result. Gluts of Conversions will suffer most. Desirability being the key factor (it IS a dressed up apartment). Thus, the end result is most conversions will be re-converted red sox spring training tickets back to rentals as demand is almost nil and prices red sox spring training tickets come back into line with fundamentals. It s basic economics. Thus, the reason for my statement about Econ 101 .
I am going to assume two things about you LA. One, you are a conversion owner/speculator. Two, you were not a player in the SoCal market space from 89-96. The historical perspective on the condo implosion in that and other regional/national crashes and corrections are well known.
I predict that theory will get crushed in the next few years. Even the retarded landlords on here spouting it haven t factored in that people can MOVE (duh!) to where there is oversupply and living is cheap. We ve had a massive increase in supply all over the country in the past 4 years to cash in on the flippers and investors idiocy, so demand was artificial, and now that the downtrend red sox spring training tickets is here, rent is going to follow - especially with the job losses that are coming. But all you genius landlords who claim rents are rising should try to raise rent and see how fast you end up going BK. You re going to find out what you own owns you.
I shit you not that is almost word for word what the advertisment said. What a joke this has become. It is only a matter red sox spring training tickets of time till the sheite hits the fan. Interestingly though red sox spring training tickets I know three people who either sold there home or sold a home in the last two weeks. Who are these idiots still out there buying???
I think what they re talking about is the wife and family of the active duty guys going back to live with Mom and Dad while h